IndiaLends’ Borrower Pulse Report has been trying to understand the feelings of borrowers since the country’s foreclosure a year ago.

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Gaurav Chopra, Founder and CEO of IndiaLends, said: “The financial constraints induced by the Covid-19 pandemic have made the past 12 months one of the most difficult times of our lives. The economic downturn, coupled with job losses, has taken a heavy toll on many people across the country. However, our survey suggests a strong sense of resilience among millennials who decide to take full control of their financial future. The entrepreneurial spirit shown by such a large percentage of our borrowers during the pandemic is a positive development. It is also encouraging to see that the majority of loan applications have come from Tier II cities, which is a clear indication that there is a huge pent-up demand in these under-exploited markets. Our study makes me optimistic about a faster post-pandemic economic recovery. “

“Interestingly, level II cities had 54% loan requests compared to 46% for level I cities. Level II cities with maximum loan requests were Coimbtore, Chandigarh, Lucknow, Indore and Kochi, “he added.

The national study was based on data collected from more than 150,000 borrowers aged 21 to 55, in Tier I and II cities, during the period of March 25, 2020 to March 20, 2021.

While Delhi NCR recorded the maximum number of loan applications, there was also a 38% increase in loan applications from Tier II cities. Due to a decline in luxury spending, loan applications from Tier I cities have seen moderate demand.

However, nearly 52% of the borrowers in the study were in the 25-35 age bracket, making it a millennial-centric report. The report included both male and female borrowers, seeking loans ranging from Rs 10,000 to Rs 50 lakh “

Here are other important findings from the study:

In Mumbai, 27% of borrowers have taken a personal loan to start their own business, while 15% of borrowers have taken a loan to purchase electronic gadgets such as laptops and tablets, given the move to a remote working culture.

Delhi witnessed 31% of loan applications for the purchase of durable household goods such as washing machines and dishwashers, while 25% of the applications were for medical bills due to the pandemic.

28% of loan requests received in Bangalore were for the purchase of electronic gadgets, followed by 12% of refresher course requests, which shows that many people used their free time to hone their skills or improve their skills.

In Chennai, 19% of loan applications were for the purchase of two or four wheels, while 17% of borrowers opted for loans to purchase electronic gadgets such as smart TVs and laptops.

In Hyderabad, 20% of borrowers have opted for personal loans to cover their medical costs, while 15% of applicants have taken refresher courses.

The survey also found that wedding and travel spending has declined as a percentage, confirming that the younger population is now considering low-key weddings and budget travel options.